Compliance November 6, 2019

2020 Contribution and Benefit Limits Announced

The limit on deferrals to 401(k), 403(b) and most 457 plans has been increased by $500.

Reported by

The IRS has announced contribution and benefit limits for 2020.

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $19,000 to $19,500.

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

The catch-up contribution limit for employees aged 50 and over who participate in these plans is increased from $6,000 to $6,500.

The limitation regarding SIMPLE retirement accounts for 2020 is increased to $13,500, up from $13,000 for 2019.

The limit on annual contributions to an IRA remains unchanged at $6,000. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.

The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $65,000 for married couples filing jointly, up from $64,000; $48,750 for heads of household, up from $48,000; and $32,500 for singles and married individuals filing separately, up from $32,000.

Other limits included in IRS Notice 2019-59 include:

  • Effective January 1, 2020, the limitation on the annual benefit under a defined benefit (DB) plan under § 415(b)(1)(A) is increased from $225,000 to $230,000.
  • The limitation for defined contribution (DC) plans under § 415(c)(1)(A) is increased in 2020 from $56,000 to  $57,000.
  • The annual compensation limit under §§ 401(a)(17), 404(l), 408(k)(3)(C), and408(k)(6)(D)(ii) is increased from $280,000 to $285,000.
  • The dollar limitation under § 416(i)(1)(A)(i) concerning the definition of “key employee” in a top-heavy plan is increased from $180,000 to $185,000.
  • The limitation used in the definition of “highly compensated employee” under§ 414(q)(1)(B) is increased from $125,000 to $130,000.
Products November 5, 2019

RedBlack Launches Salesforce Integration

“Our goal is to provide wealth managers with a secure, data-rich and customizable experience designed to drive client satisfaction and optimize efficiency,” says RedBlack Chief Product Officer and Co-Founder Roel Vlemmings.

Reported by

RedBlack, an independent provider of portfolio management solutions, has launched the new RedBlack Salesforce Connector on the Salesforce AppExchange.

The firm says the Salesforce extension will help financial advisers and wealth managers streamline their workflows and optimize the client experience.

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

The integration enables advisers to use the Salesforce platform to view their clients’ RedBlack data, including accounts, households, positions and pending orders. The integration will further allow advisers to initiate trading and rebalancing actions and receive an alert when these are completed.

“Our goal is to provide wealth managers with a secure, data-rich and customizable experience designed to drive client satisfaction and optimize efficiency,” says RedBlack Chief Product Officer and Co-Founder Roel Vlemmings.

RedBlack Chief Operating Officer John Grimaldi adds that the integration is a direct response client to requests for “a seamless, interactive link connecting rebalancing and trading functionalities to a robust client relationship management platform.”

“We believe the quality of our combined technologies and the bi-directional nature of the application will distinguish it in the market,” Grimaldi says.

«